With the original justification for buying these three growth stocks now invalid, Louis Navallier of InvestorPlace.com says it’s time to bail out and put money to work in more promising corners of the market.
Earlier in the month, I sent my subscribers a flash alert recommending that they exit open positions in shares of EQT Corporation (EQT). This was our way to play the natural gas boom in the US, and we added the stock because of its big investment in the massive Marcellus shale deposit.
But the recent low prices for natural gas have weighed on the company’s earnings results, and my rigorous weekend screens showed that buying pressure has slipped for the company. Sell EQT.
I also want to recommend today that you exit your positions in two more stocks:
BorgWarner (BWA) is a play in the auto parts industry. Here is a recent daily chart:
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BWA sells its engine and drivetrain products for many of the world’s largest automotive manufacturers, including Ford (F), Volkswagen (VLKAY), and Daimler (DDAIF).
However, the company reported a first-quarter earnings miss, and investors have decided to let the stock coast for now. This sideways performance isn’t what we want to see from our aggressive stocks, and the company has been bouncing around between a hold and a buy rating. Today, I want you to sell this position and move on to better opportunities.
Our last sell this month is VMware (VMW), our play on the super-hot area of cloud computing. Here is a daily chart:
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This tech titan is a leader in the field and has a strong history of earnings surprises in the two years that we owned the stock, as VMW spent much of that time on a strong long-term trend higher.
However, we moved VMW shares to a hold in May due to a dip in buying pressure, and investors have been slow coming back to the stock because of weakness in the company’s competitors and fears of market saturation. Cut your ties to VMW as well.
See also: Why Selling Is So Darn Hard
By Louis Navallier, editor, Blue Chip Growth
